KBRA Assigns Preliminary Ratings to BANK5 2025-5YR13

KBRA is pleased to announce the assignment of preliminary ratings to 37 classes of BANK5 2025-5YR13, a $737.1 million CMBS conduit transaction collateralized by 31 commercial mortgage loans secured by 59 properties.

The collateral properties are located throughout 24 MSAs, of which the three largest are New York (31.5%), East Bay (13.4%), and Norfolk (7.0%). The pool has exposure to all major property types, with four types representing more than 10.0% of the pool balance: lodging (27.4%), office (20.4%), retail (19.2%), and self-storage (13.5%). The loans have principal balances ranging from $2.4 million to $73.5 million for the largest loan in the pool, The Spiral (10.0%), a 66-story, 2.8 million sf, Class-A LEED Gold and Fitwel 2-star certified office tower located in the Hudson Yards neighborhood of New York City’s borough of Manhattan. The five largest loans, which also include Gateway Center North (10.0%), The Plaza at Walnut Creek (10.0%), Storage Depot - Virginia Beach (7.0%), and AHIP Hotel Portfolio (5.8%), represent 42.7% of the initial pool balance, while the top 10 loans represent 64.7%.

KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of the underlying collateral properties' financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our North American CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 11.5% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 37.7% less than third party appraisal values. The pool has an in-trust KLTV of 92.6% and an all-in KLTV of 95.3%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan that are then used to assign our credit ratings.

To access ratings and relevant documents, click here.

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Methodologies